In the Boise City, ID market in September, new home closings grew year-over-year, and there were suggestions of strengthening market conditions as the percentage hike was an greater than August 2015. New home closings saw a 33.7% hike from a year earlier to 262. This came after a 15.9% climb year-over-year in August.
A total of 2,715 new homes were sold during the 12 months that ended in September, up from 2,649 for the year that ended in August.
Of the total number of closings, new home closings made up 14.0%. A year ago, new home closings accounted for 13.8%. Following a year-over-year increase in August, closings of new and existing homes also increased year-over-year in September.
Pricing and Mortgage Trends
The average price of new homes was $269,182 per unit in September, up 6.2%from a year earlier. This bump compares to a period of little change in August from a year earlier.
The average mortgage size on new homes moved north year-over-year along with new home prices. It climbed 7.5% in September from a year earlier to $235,837. Average mortgage size went from $223,959 in August 2014 to $222,884 in August 2015.
Other Market Trends
The percentage of new home closings belonging to single-family homes has risen from last year while the portion of new home closings belonging to attached units has dropped. The share of new home closings belonging to single-family homes jumped from 94.9% in September 2014 to 98.1% of closings in September 2015. At the same time, the share of new home closings belonging to attached units fell to 1.9% of closings from 5.1% of closings.
The average unit size of newly sold homes slid 1.6% year-over-year to 2,229 square feet in September 2015. In August, the average size of new homes sold went from 2,200 square feet a year earlier to 2,209 square feet.
Foreclosures and real estate owned (REO) closings continued to drop from a year earlier in September, but did not look to be a burden on the market. Together, foreclosures plus REO closings made up 9.7% of existing home closings, down from 14.8% a year earlier. The percentage of existing home closings involving foreclosures fell to 3.2% in September from 6.5% a year earlier while REO closings as a percentage of existing home closings slid to 6.5% from 8.3% a year earlier.